Memorandum
Date: September 19, 2023
To: The Honorable Lake County Board of Supervisors
From: Mireya G. Turner, Community Development Director
Andrew Amelung, Cannabis Program Manager
Subject: Consideration of the proposed Agricultural Exempt & Temporary Cannabis Processing Structures Ordinance that establishes regulations to permit the use of certain temporary structures for the purposes of drying and processing commercial cannabis onsite at approved outdoor, mixed-light, and indoor commercial cannabis operations, and allowing agricultural exempt structures for the storage of supplies and equipment for cannabis cultivation
Executive Summary: The Agricultural Exempt & Temporary Cannabis Processing Structures Ordinance is an ordinance that establishes regulations to permit the use of certain temporary structures for the purposes of drying and processing commercial cannabis onsite at approved outdoor, mixed-light, and indoor commercial cannabis operations, and allows agricultural exempt structures for the storage of supplies and equipment for cannabis cultivation. The proposed ordinance includes several limitations on the size, scope, and duration of the temporary structures that can be permitted in the County, including allowable footprints of structures, and building material specifications that cover temporary tent structures and temporary container structures.
The draft ordinance includes the following types of regulations on temporary drying structures for commercial cannabis cultivation: 1) application requirements including submittal of site plans, project descriptions, locations of proposed and existing structures and uses of structures, and proposed dates of use; 2) setback requirements and height limitations; 3) allowable footprint size; 4) slope requirements; 5) electrical limitations and inspection requirements; 6) guidelines for the use of generators; and 7) limitations on the duration of use. The draft ordinance also establishes a process for temporary drying structure building permit applications, renewal, suspension, and revocation; and establishes development standards, performance standards, and temporary permit requirements, as well as a process for building agricultural structures that are exempt from building permit requirements.
At its meeting on September 19, 2023, the Board considered the recommendations of the Cannabis Ordinance Task Force, Agriculture Advisory Committee, and Planning Commission. In addition to these amendments to the draft ordinance, the Board also approved amendments to increase setbacks, clarify language, and correct language pertaining to the environmental analysis. These amendments were substantive, resulting in the continuance of the draft ordinance hearing to the September 26, 2023, meeting.
The amended ordinance is included as Attachment 1 (redlined) and 2 (clean version). The versions considered at the September 19, 2023 meeting are included as Attachments 3 and 4. The Board’s Resolution of Intent is included as Attachment 5, and the draft Initial Study (IS 23-13) as Attachment 6. Public input from the last hearing is included as Attachment 7.
PROJECT OVERVIEW
On September 27, 2022, the County of Lake Board of Supervisors (BOS) adopted Resolution of Intent (Resolution 2022-122) to initiate a zoning ordinance amendment regulating agricultural-related structures, mitigation fees, and temporary building types allowable for use on approved commercial cannabis cultivation sites. The BOS requested that the resolution and draft ordinance be considered by the Cannabis Ordinance Task Force (COTF), Agricultural Advisory Committee (AAC) and Planning Commission before returning all recommendations back to the BOS for a final consideration.
Resolution 2022-122 encompassed four primary types of accessory agricultural structures as proposed allowable uses on existing, permitted commercial cannabis cultivation sites which include: 1) allowing agricultural exempt structure permits to be issued for commercial cannabis operations, an application that was not previously allowed for commercial cannabis cultivation without a preexisting agricultural use on the property and a minimum of 10 acres; 2) allowing temporary hoop structures for use within outdoor cultivation canopy areas, which can serve as a means of protecting plants from natural elements and contamination and reducing the amount of water consumption and transpiration in times of severe and exceptional drought; 3) allowing shipping containers for use as temporary storage, drying, and processing structures; and 4) allowing general purpose tents for use as storage, drying, and processing structures. The first two types of proposed accessory structures would both require an agricultural exempt permit to be approved by the CDD Planning Division and the Department of Agriculture, while the second two types of structures would require a temporary building permit, accompanied by a demolition permit, to be approved by the CDD Planning Division and issued by the CDD Building Division.
Between October 2022 and January 2023, the COTF reviewed these proposed regulations and considered public comments at their advisory committee meetings. The COTF established final recommendations at their January 23, 2023 meeting and approved the recommendations at their February 7, 2023 meeting. Recommendations made by the COTF covered definitions and terms, specific building practices, access for emergency vehicles, generator use for outdoor cultivation sites, Department of Cannabis Control regulations, Fire District requirements, and limitations on square footage.
On February 27, 2023, the Community Development Director brought the ordinance and COTF recommendations to the Agricultural Advisory Committee at their regular meeting. The Committee agreed with the COTF recommendation to preserve the definition of Ag-exempt Structures as well as requirements to make site plans available to the responsible fire district before commencement of the project and to physically locate site plans on site in a Knox Box or other area where they may be easily accessed. They made no further comments on the recommendations.
On April 18, 2023, the Planning Commission considered the draft ordinance and COTF and AAC recommendations. Their discussion included: 1) concerns over generator use and their potential impacts on noise, air quality, wildfire risks and hours of operation; 2) concerns about the impacts of concrete padding as a foundation for temporary structures on agricultural land; 3) setback requirements; 4) the movement of containers and the dismantling and removal of temporary structures; and 5) the lack citation and a clear nexus between the items in the draft ordinance and existing regulations, restrictions and requirements. The Planning Commission made a motion to pass further recommendations that increased generator setback requirements, remove the requirement for concrete and asphaltic concrete padding, clarification on allowable square footage and the appropriate CEQA process for environmental analysis of the proposed ordinance.
At the April 18, 2023 BOS meeting, staff brought the collective recommendations from the COTF, AAC, and Planning Commission for consideration. A determination was made that the use of temporary hoop houses for outdoor cannabis cultivation could be allowed with a ministerial permit, and the accessory nature of these structures along with demolition requirements could move forward as a stand-alone ordinance that is exempt under CEQA Section 15304. The addition of these temporary hoop structures were deemed to be a Class 4 CEQA exemption which “consists of minor public or private alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees exempt for forestry and agricultural purposes.” Section (e) of this CEQA exempt class allows for “minor temporary use of land having negligible or no permanent effects on the environment, including carnivals, sales of Christmas trees, etc.” The stand-alone ordinance was discussed under consideration at several subsequent BOS meetings and was ultimately approved on May 16, 2023 as Ordinance 3132 - The Temporary Hoop Structures for Commercial Cannabis Ordinance. The remaining portions of the ordinance returned to the department for environmental analysis.
PROJECT SETTING
Largely due to the market changes in the cannabis industry, the County is experiencing an increase in demand for onsite temporary processing structures and ag-exempt structures from cannabis cultivators. There has also been rise in unpermitted processing activities due to a limited number of options for offsite processing available to cultivators within the County. In addition to the high costs and logistical dilemmas of moving wet cannabis product off cultivation sites, local permittees generally prefer to conduct drying and processing of cannabis products onsite. Many of the County’s approved major and minor permits for outdoor, mixed-light, and indoor cultivation operations include plans for onsite, permanent processing structures and associated facilities. Despite this, due to cannabis market prices in California drastically falling in 2021, the high costs and delayed processing times for local permitting and state licensing, and steep competition with an illegal cannabis market, many permittees are currently unable to implement their approved processing facility plans. They are currently looking to elected officials to provide a path for temporary structure permitting. If approved, this can help them bridge the gap to a position where they are able to implement the full scope of their approved plans without having to go through the entire use permitting process again.
The County currently has 141 approved commercial cannabis use permits. These approved major and minor use permits are comprised of 107 outdoor cultivation operations and 25 mixed-light or indoor cultivation operations, with the remaining permits for manufacturing, processing, or retail uses. Base Zoning Districts where cannabis cultivation is an allowable use include: Agricultural Preserve, Agriculture, Timber Preserve, Rural Lands, Rural Residential, Suburban Reserve, and Planned Development Commercial. Locations where cultivation occurs range in character from traditional agricultural valleys with access to basic infrastructure and utilities, to remote locations in rugged mountainous terrain typically far removed from any utilities or services. Permittees actively pursuing a pathway to use temporary processing structures cross both sides of this spectrum, while those who are interested in new ag-exempt structures tend to be those in more rugged areas without previously established agricultural uses.
FIGURE 1. Cannabis Permitting in Lake County
PROJECT ANALYSIS
General Plan Conformity
The County of Lake General Plan was reviewed in order to determine if the proposed ordinance was aligned with its goals and policies. The following section highlights areas where the proposed ordinance is supported by the General Plan:
Chapter 3 Land Use
3.2 Growth and Development
Goal LU-1: To encourage the overall economic and social growth of the County while maintaining its quality of life standards.
• Policy LU-1.8: Permitting Procedures and Regulations
The proposed ordinance supports the County’s pursuit to ensure that its permitting procedures and regulations are consistent and efficient.
Goal LU-2: To clearly differentiate between areas within Lake County appropriate for higher intensity urban services and land uses from areas where rural resource use should be emphasized.
• Policy LU-2.4: Agricultural / Residential Buffer
The proposed ordinance is consistent with the County policy of requiring adequate setbacks between agricultural and non-agricultural uses.
3.9 Economic Development
Goal LU-6: To maintain a healthy and diverse local economy that meets the present and future employment, shopping, recreational, and service needs of Lake County residents.
• Policy LU-6.1: Diverse Economic Base
The proposed ordinance supports the County’s goal of actively promoting the development of a diversified economic base by continuing to promote agriculture, recreation services, and commerce by expanding its efforts to encourage industrial and non-industrial corporate development.
Chapter 7 Health & Safety
7.1 General
Goal HS-1: To encourage the County is protected from injury and damage resulting from natural catastrophes, man-made events, and hazardous conditions.
• Policy HS-1.1: Development Constraints
By only allowing temporary and ag-exempt structures in previously analyzed and approved cultivation areas, the proposed ordinance supports the County’s policy to permit development only in areas where the potential danger to the health and safety of people can be mitigated to an acceptable level.
• Policy HS-1.5: Interagency Coordination
The proposed ordinance supports interagency coordination between the CDD Planning Division, Building Division, and the local Fire Districts.
7.3 Air Quality
Goal HS-3: To reduce the generation of air pollutants and promote non-polluting activities to minimize impacts to human health and the economy of the County.
• Policy HS-3.7: Development Requirements
The proposed ordinance supports the County’s policy to require developments to be located, designed, and constructed in a manner that would minimize the production of air pollutants by meeting state regulations and requirements as well as those of the Air Quality Management District.
7.5 Hazardous Materials
Goal HS-5: To protect residents, visitors, and property from hazardous materials through their safe use, transport, and disposal.
• Policy HS-5.6: Contamination Prevention
The proposed ordinance is aligned with current requirements for the storage of hazardous materials and is consistent with the County’s policy of reviewing new development proposals to ensure that soils, surface water and groundwater are protected from contamination.
• Policy HS-5.10: Inspection of Hazardous Material Handlers and Waste Generators
The proposed ordinance would require inspections that support the County’s goal of inspecting hazardous material handlers and hazardous waste generators to ensure full compliance with laws and regulations.
Chapter 8 Noise
8.1 Noise
Goal N-1: To protect County residents from the harmful exposure of excessive noise and prevent incompatible land uses from encroaching upon existing and planned land uses.
• Policy N-1.1: Noise Compatibility Guidelines
By requiring all projects to meet existing noise regulations and thresholds that are “normally acceptable”, the proposed ordinance supports the County’s policy of ensuring noise compatibility guidelines.
• Policy N-1.2: Sensitive Receptors
By only allowing temporary processing structures on approved cultivation sites that have been analyzed for proximity to sensitive receptors through 1,000-foot setbacks, the proposed ordinance supports the County’s goal to prohibit the development of new commercial, industrial, or other noise generating land uses adjacent to existing residential uses and other sensitive noise receptors such as schools, health care facilities, and libraries.
Zoning Ordinance Conformity and General Requirements
By requiring temporary processing structures and ag-exempt structures be located on approved project cultivation area sites that allow for the processing and storage uses described with Article 27.13(at), the proposed ordinance is consistent Chapter 21 of the County Municipal Code - the Zoning Ordinance.
ENVIRONMENTAL REVIEW
The draft ordinance was evaluated in Initial Study 23-13 (Attachment 4) and given the nature of the ministerial permits allowed through the ordinance and the limitation of such permits to be ancillary uses to approved major and minor use permits that have undergone prior CEQA evaluations, no significant impacts were identified and a negative declaration was prepared. Through the requirements of building and safety standards the proposed ordinance would likely improve the safety and wellbeing of the County. The public review period for the Initial Study started August 3, 2023 and concluded September 2, 2023.
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Recommended Action:
Staff recommends the Board of Supervisors take the following actions:
A. Adopt Negative Declaration (IS 23-13).
B. Approve the first reading of the Ordinance allowing Ag-Exempt and Temporary Processing Structures on approved Commercial Cannabis Cultivation Sites.
C. Advance the Ordinance to the next available Board of Supervisors meeting.
Sample Motions:
Negative Declaration
I move that the Board of Supervisors find that the ordinance will not have a significant effect on the environment, and that the Board of Supervisors adopt Initial Study (IS 23-13).
Agriculture Exempt and Temporary Processing Structures Ordinance
I move to approve the ordinance, to be read in title only.
I move to advance the ordinance to the next available Board of Supervisors meeting.